A crypto analyst encouraged investors to invest in dog-themed cryptocurrency, Dogecoin (DOGE)emphasizing that the purchase of this part even in anticipation of a bullish rally was the safest trade one could make.
Dogecoin is the safest trade for investors
In a recent X (formerly Twitter) joba crypto analyst identified as “Altcoin Sherpa,” expressed optimism about Dogecoin’s future prospects and its potential as a profitable investment. The analyst suggested that investing in DOGE hoping that its the price will skyrocket at $0.4 is one of the safest trades for investors in the crypto market.
Despite the fundamental principles volatile nature of coins, Altcoin Sherpa highlighted several factors that could serve as a bullish catalyst for DOGE. Sharing a Dogecoin price chart, he revealed that retail investors are likely to purchase and accumulate Dogecoin, potentially fuel a rise in prices as demand for cryptocurrency increases.
Additionally, the crypto analyst noted the considerable influence social media trends had the value of a coin. He revealed that only one X position from SpaceX and Tesla CEO Elon Musk about DOGE could significantly propel its price to new highs.
This scenario was proven earlier in 2019 when Musk tweeted about Dogecoin, stating that “it might be his favorite cryptocurrency” and “it was pretty cool.” The effects of this tweet had a historic impact on the Dogecoin ecosystem, as the the price of cryptocurrency skyrocketed after being recognized by one of the world’s most influential billionaires and investors.
Altcoin Sherpa also identified The great liquidity of Dogecoin which makes it easier to buy and sell without any negative effect on its price. He also pointed out that the dog-themed cryptocurrency has relatively low downside risk compared to other meme coins on the market. As a result, the crypto analyst expects DOGE to outperform other “crap coins” in the market.
Sherpa Altcoin revealed that he currently does not hold any Dogecoin; however, he believes it is an excellent investment for investors looking to take a passive approach and hold on to their investments in anticipation of a bull run.
Whales collect millions of DOGE
Crypto whales are beginning to show renewed interest in Dogecoin, accumulating significant amounts of the dog-themed cryptocurrency. According to crypto analyst Ali Martinez, Dogecoin Whales have purchased over 700 million DOGE tokens worth approximately $112 million.
Martinez disclosed this transaction in an X post on May 31, emphasizing that the purchase took place within 72 hours. This increased whale activity comes at a time when DOGE has been relatively stable, experiencing slight increases as pessimistic market conditions fade.
At the time of writing, Dogecoin is trading at $0.159, reflecting a 0.6% 24-hour increase and a 15.07% price rise over the past month, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
